Overnight Summary

Each Market In Focus

The Australian share market looks set to open lower after US stocks pulled back sharply from the record levels they reached last week.
At 0700 AEDT on Monday, the share price futures index was down 27 points, or 0.45 per cent, at 5,983.
In economic news on Tuesday, the National Australia Bank releases its monthly business survey and the ANZ-Roy Morgan Consumer Confidence weekly survey is due out.
In equities news, Fortescue Metals releases its December quarter production report, Newcrest Mining releases its December quarter production report, and education services provider Navitas releases its half year results.

US stocks pulled back sharply from record levels last week, with the Dow falling more than 100 points, weighed down by Apple after a media report added to concerns about demand for the iPhone X.
Apple shares fell as much as 2.6 per cent after the Nikkei reported the company will halve the production target for its flagship iPhone X this quarter. Apple is due to report results on Thursday.
The technology sector’s 0.50 per cent drop weighed the most on the markets, but the biggest decliners were the defensive sectors – utilities, real estate and telecoms, all down more than 0.8 per cent as US 10-year treasury yields hit their highest since 2014.
“Today’s movement is just a bit of profit taking after last week and ahead of a very busy week,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
The S&P 500 was down 10.89 points, or 0.37 per cent, at 2,861.98 and the Nasdaq Composite was down 22.84 points, or 0.3 per cent, at 7,482.93.

Gold prices fell for the second straight session, weighed down by a rebounding dollar and concerns about higher interest rates.
Front-month gold for January delivery declined 0.9% to $1,339.80 a troy ounce on the Comex division of the New York Mercantile Exchange. The dollar plumbing fresh multiyear lows sent prices to their highest level since August 2016 last week, as a weaker U.S. currency makes gold and other dollar-denominated commodities cheaper for overseas buyers.
IRON ORE: $72.59 -0.50(February contract)

Crude prices fell Monday, weighed down by an increase in the number of rigs drilling for oil in the U.S. and a stronger dollar.
Light, sweet crude for March delivery declined 58 cents, or 0.9%, to $65.56 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.06, or 1.5%, to $69.46 a barrel.

The dollar rose Monday, as investors locked in profits on bets against the U.S. currency ahead of a Federal Reserve meeting later this week.
The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.3% to 83.35.
Investors are looking ahead to the Federal Reserve’s latest two-day monetary policy meeting, which concludes Wednesday, as well as data on manufacturing and unemployment.
While investors are largely expecting the Fed to hold short-term interest rates steady, the central bank’s policy statement could signal whether officials intend to raise rates at a quicker pace than expected this year. Expectations of rising rates tend to boost the dollar, as they make the currency more attractive to yield-seeking investors.
The WSJ Dollar Index stands near a three-year low, after falling 8.5% in the last 12 months. Despite Monday’s rally, expectations that central banks abroad will tighten monetary policy at a faster pace than the Fed will continue hurting the dollar, analysts said.
Australian dollar:
The Australian dollar is slightly higher despite falls on Wall Street overnight.
At 0640 AEDT on Monday, the local currency was worth 81.00 US cents, up from 80.89 cents on Monday.

Stellar results from chip-maker AMS and another big pharma deal dominated European share trading at the start of a heavy earnings week, while a rise in bond yields hit income stocks.
The euro, whose strength had crimped stocks late last week, eased back from its highs, but Europe’s STOXX 600 index edged 0.2 per cent, as investors held their breath for the results rush.
“Some people are recalculating what the euro’s strength means for our earnings,” said Martin Moeller, co-head of Swiss and global equity portfolios at UBP in Geneva.
“What kind of outlook do you give with the dollar at $1.25? I think companies will be more hesitant,” he added.
Austria’s AMS soared 16 per cent after its 2017 revenue doubled and the iPhone component supplier raised its growth forecasts far beyond analyst expectations.

Asian shares extended their bull run on Monday amid upbeat corporate earnings and strong global economic growth, while the dollar struggled to bounce as the White House continued to complain of “unfair” trade practices by competitors.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.26 per cent, aiming for a 12th straight session of gains. It is up 8 per cent for the year so far.
Japan’s Nikkei rose 0.1 per cent as the yen eased a little, while South Korea notched a record.
Hong Kong’s Hang Seng has been the best performer for the year so far with a rise of almost 11 per cent, while Shanghai blue chips ran into profit-taking on Monday.
The S&P/NZX50 Index rose 16.17 points, or 0.19 per cent, to 8327.59 on Monday.

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